Kerala to save ₹2,232 crore by choosing GNA power deal
Chief Minister V D Satheesan defended the decision to procure electricity from a private firm over a Himachal Pradesh proposal.
Kerala Chief Minister V D Satheesan defended the state's decision to buy electricity from GNA Energy, stating that an alternative proposal from Himachal Pradesh would have cost the state an additional ₹2,232 crore. Speaking at a press conference following a cabinet meeting on Wednesday, Satheesan said the choice was based on cost and power availability.
According to Urban Acres, the Himachal Pradesh Power Trading Corporation Ltd (HPPCL) offered electricity at ₹14.50 per unit through the Power Trading Corporation of India Ltd (PTC). In contrast, GNA offered rates between ₹8.63 and ₹8.90 per unit via an open platform.
The Chief Minister noted that the GNA deal would supply 1,812 million units by the end of March, while the Himachal proposal would have provided 843 million units. Regarding peak demand hours from 6 pm to midnight, Satheesan said GNA would supply 453 million units compared to 353 million units from the Himachal option.
Satheesan rejected reports that the deal caused a ₹722 crore loss. Citing a Kerala State Electricity Board (KSEB) report, he explained that purchasing power from Himachal above the regulatory ceiling would have resulted in extra costs of ₹722.91 crore between October and December, and ₹1,510.43 crore up to May.
Addressing allegations regarding the removal of the KSEB chairman, Satheesan described the transfer as a routine administrative procedure that also involved several other senior officials. He denied that the chairman had been moved for opposing the procurement decision.
The Chief Minister also stated that the previous Left Democratic Front (LDF) government had purchased power from GNA in 2025. He alleged that during that tenure, KSEB procured electricity from various private companies, including Adani, Jindal, and Tata Power, with limited purchases from NTPC.